Why the PRO Act is ANTI-Small Business
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This is horrible! I had no idea this was happening. Just another way to squelch freelancers and tiny businesses, also kill places like Etsy.
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This is horrible! I had no idea this was happening. Just another way to squelch freelancers and tiny businesses, also kill places like Etsy.
I invite everyone to really take a hard look at the CA AB5 and its devastation in CA. That piece of legislation, not only affects places like Etsy, but it also affects reps working for Amway, Young Living, Do Terra, and the like. There are so many lawsuits regarding the AB5 that they've had to make a ton of amendments and exceptions to the law. Unfortunately, if the PRO Act passes and this overreaching legislation is passed nationally, I'd guess that CA would lose their exceptions and would have to start all over. I'd say this would likely reach the Supreme Court. However, if the court is packed, it won't make a difference. People should have a choice and this legislation gives people nowhere to run!
Here's how to fully understand it. Read Biden's website. The plan is to get the PRO Act with the ABC Test in it across labor, tax, and employment law. Anyone who says differently isn't telling the truth. Just go to Biden's site. "As president, Biden will put a stop to employers intentionally misclassifying their employees as independent contractors. He will enact legislation that makes worker misclassification a substantive violation of law under all federal labor, employment, and tax laws with additional penalties beyond those imposed for other violations. And, he will build on efforts by the Obama-Biden Administration to drive an aggressive, all-hands-on-deck enforcement effort that will dramatically reduce worker misclassification. He will direct the U.S. Department of Labor to engage in meaningful, collaborative enforcement partnerships, including with the National Labor Relations Board (NLRB), the Equal Employment Opportunity Commission, the Internal Revenue Service, the Justice Department, and state tax, unemployment insurance, and labor agencies." In the earnest process of stopping misclassifying workers, the ABC Test will instead misclassify ICs as workers across labor, tax, and employment law, making it too perilous for companies to hire ICs (even in good faith). They simply won't bother. And if you think companies will be hiring their ICs as W2 workers, I have two questions for you. There are 59 million ICs: will there be 59 million jobs? And who said an IC wants to be force into being a W2 employee? We're small businesses. We want to stay that way. AB5 was a disaster in California. The ABC Test is exactly the same thing, so the disaster would become national.